Lynette Zang (Uncut) 01-18-2025
“Thinking About Retiring? This Is How Much Gold & Silver You NEED TO RETIRE IN 2025” – Lynette Zang
The global debt at 313 trillion, not counting all the derivatives and the global gold supply is almost 70, well, let’s see, hundreds, thousands, millions, 7.498 billion ounces, that’s it. And that means that the current fundamental value, which you’ve heard me say, and I know it sounds crazy, is over 41, almost $42,000 an ounce, and the fundamental value of silver is 2,000. This is how you know that it’s so severely undervalued, because they’re gonna hide it until they can’t.
And we’ve seen this happen over and over, even currently in a whole bunch of currencies that are dealing with hyperinflation. So all you need to do to determine the true value of an ounce of gold for its most important function, which is to hold your purchasing power intact, is divide the debt by the gold, and that’s how you get that 42 grand. Global debt has been on an upward trajectory for over a decade, a trend significantly accelerated by the COVID-19 pandemic.
By 2023, global debt reached a staggering $307 trillion, according to the Institute of International Finance, IIF. The debt expansion continued through 2024, with global debt increasing by around $12 trillion in the first three quarters alone, bringing the total to nearly $323 trillion. Notably, the third quarter of 2024 saw the third largest quarterly surge in global debt on record, trailing only the sharp increases observed in the second and fourth quarters of 2020, when the pandemic spurred debt growth of over $11 trillion each quarter.
Lynette, founder of ITM Trading, argues that gold and silver are positioned to experience significant price increases as global debt rises, making them key assets for wealth preservation. For gold, Lynette’s analysis suggests that if the precious metal were to back the growing global debt fully, its price could reach extraordinary levels. With roughly 205,000 metric tons of gold in existence, equivalent to approximately 6.6 billion ounces, the price of gold could rise to $42,000 per ounce based on a direct calculation against global debt.
Despite trading between $2,600 and $2,700 per ounce, gold remains undervalued compared to its fundamental worth, presenting an opportunity for investors seeking to hedge against inflation and economic uncertainty. Lynette is even more bullish on silver, believing its value far exceeds its current market price. She estimates that silver could easily surpass $2,000 per ounce once key resistance levels are broken, as the market is currently suppressed.
This compressed nature of silver suggests that once it breaks free, a sharp surge in price is likely akin to a spring releasing after being held back for too long. Now let’s look at Lynette’s insights from her recent interview on calculating the actual value of gold and silver in today’s uncertain economic climate. Before we continue, please subscribe to our channel and activate the bell icon to stay updated with our latest content.
So we look at global debt because that’s how money is created in this system. And this is fiat money versus sound money. They’re both money, they’re just the flip side of the coin.
So with debt, which is how money is created currently, it’s an unlimited amount, right? That’s why every time there’s a problem, central bankers go to their printing presses because they can. There are no limitations on that. Now, every time they do that, the purchasing power of the value of the currency goes down, but eh, what do they care? They get to use it first when it has its most value.
It’s us, the public, that has to deal with everything else. But the global gold supply is finite. I don’t care if they find a new discovery.
Anytime anything is physical, there’s going to be a limited amount of it, anytime. So the fundamental value that I’m about to show you represents the true value of gold, the fundamental value of gold, on a one-to-one cover ratio, which means that this is how much it’s really worth. When they do that overnight reset, I can’t tell you what the cover ratio is going to be at that time, and nor can I tell you what the fundamental value of the gold is going to be at that time because it depends on the level of debt that they’ve grown.
But let’s just stay with current, so we’re dealing with facts. And the global debt at 313 trillion, not counting all the derivatives or all the other wonky products and complex products that Wall Street creates from it, so that’s 313 trillion, and the global gold supply is almost 70, well, let’s see, hundreds, thousands, millions, 7.498 billion ounces, that’s it. And that means that the current fundamental value, which you’ve heard me say, and I know it sounds crazy, is over 41, almost $42,000 an ounce, and the fundamental value of silver is 2,000.
This is how you know that it’s so severely undervalued because they’re gonna hide it until they can’t. And we’ve seen this happen over and over, even currently in a whole bunch of currencies that are dealing with hyperinflation. So all you need to do to determine the true value of an ounce of gold for its most important function, which is to hold your purchasing power intact, is divide the debt by the gold, and that’s how you get that 42 grand.
And silver, remember, okay, is historically, when they did this, this is a 20th of an ounce, this is a full ounce of silver. So at a 21 to one ratio, that’s how you get over $2,000 right now for the true value of silver. So can you see how severely undervalued it is? It will go to its fundamental value.
I can’t tell you exactly when, but I can tell you that it’s happened over 4,800 times, 100% of the time. It’s the way they attempt to get your confidence back. But this data then helps determine how much silver and how much gold do I really need to accomplish my goals.
So the first goal is to sustain your current standard of living, and that requires your barter ability. And so what we do is we take into account how much it costs to live, what your property taxes are, all of your fixed rate debt, your insurances, your medical, and hopefully, this is not you, but if you have any chronic medical condition, you have to deal with that as well. So we have to know, okay, well, how much are we needing to cover? So we do do a much more detailed list than this, but that’s basically what you’re looking at that directs you to the percentage in silver and the percentage in gold, which is another huge question that I get all the time, and it depends on the individual and what you are trying to accomplish with it.
And we have a whole comprehensive list of what you need barterable silver for and what you need barterable gold for. Now, and I’m also, by the way, not saying that you can’t do all of these things with, you know, I mean, a silver quarter. It’s just that it’s the right tool for the job.
That’s how we approach it. So now we’re gonna look at how much barterable silver, how much barterable gold, and for how long do I want that coverage? We do it annually at first, and then personally, I have enough coverage for myself and my daughters for 10 years. This is a global issue.
It’s gonna take a minute to walk through. And so that’s what you have to determine for yourself, and we’ll help you do that, is how many years do you want that coverage? And guess what that tells you? That tells you how much gold and how much silver in barterable form you need to sustain your standard of living for however long it is that you are wanting to do. On the barterable part, we’re gonna look at silver first because this is such an interesting long-term chart.
You always have to look long-term because you can see anything short-term, but long-term, what we’ve got are two huge cups, right? Silver currently has not concluded this cup. This is what I keep talking about, that, well, maybe it’s not gonna happen by the end of this year, but it’s working on it, and it’s definitely happening, so it’ll probably happen next year. But since this is a double cup, here’s this one big cup, here’s this next big cup, once that breaks above that, can you see how silver is likely to go toward that 2,000 bucks? Because it works like a spring.
I think I have a spring in here, I do. Works like a spring, and if you hold that spring down and you suppress it and you suppress it and you suppress it, when you remove your hand, it springs. In this case, if it breaks that top, it’ll spring up.
It’s just what always happens. So this is a huge technical pattern, especially with two major cup formations. Are they showing you this? No, they’re showing you short-term.
They don’t want you to understand how to get into position to protect yourself. But this is why silver will absolutely go to its fundamental value once it crosses that line, and it’s why you see in some currencies or at first that we could see that gold and silver ratio grow a bit more narrow. However, once we enter the hyperinflationary stage in earnest, we won’t see that anymore.
So the volume also, you can see how that is escalating. This is the volume of trading, right? It’s become a huge trading instrument, and that’s done with contracts. That’s not really done with the physical metal itself.
Though this guides the bullion prices, and you can hold all of this inside of a traditional IRA if that’s what you choose to do. That is not the choice that I personally made. I have a huge retirement plan, but it’s outside of it, and it definitely includes junk silver, pre-’64 constitutional silver, as well as rounds, as well as new stuff, because I’m not really concerned about confiscation of silver, simply because it gets used up in industry.
But we have to talk about gold as well. So we want to accumulate your wealth. We wanna protect what you have managed to accumulate so far.
So we’re gonna take a look at that. We’re also gonna take a look at how you are currently generating your income or how you plan on generating your income, and we’re gonna account for all of that, including any fees, any taxes, any losses, anything that we have to account for. And it’s not really rocket science, because if gold is worth $42,000 an ounce at this moment in time, and it’s trading at 26, 2700 bucks, you simply recoup that when it goes to fundamental value.
This is not rocket science. This is just logic and simple thought process. So how much gold do I need to protect what I’ve already accumulated? Like I said earlier, in the 403Bs, I’m sorry, you’re not gonna be able to take a withdrawal.
And if you’re currently contributing to a 401k, you’re gonna have a limitations on how much you can take out as well. So we wanna make sure that whatever you have to, or choose to, right? This is your choice. Whatever you choose to keep inside of the system is properly diversified and therefore protected.
Unsurprisingly, the global debt crisis continues to worsen with governments and corporations grappling with rising borrowing costs due to higher interest rates. The IMF and World Bank have raised alarms about the escalating debt burdens, especially in developing economies, as they struggle to meet fiscal obligations in tight financial conditions. In response to inflation concerns, central banks like the Federal Reserve have implemented aggressive interest rate hikes, leading to higher debt servicing costs for borrowers with variable rate loans.
Lynette Zhang emphasizes the growing importance of fixed rate debt as a more advantageous option for borrowers in this challenging landscape. Fixed rate loans provide stability and predictability, insulating borrowers from the volatility of fluctuating interest rates. With borrowing costs likely to remain elevated shortly, securing a fixed rate allows borrowers to manage their debt better, offering protection against unforeseen increases in repayments.
This approach enables more effective financial planning and reduces the risks associated with rising inflation and interest rates. We want to look at how much gold do I need to recoup any of those fees, any of those taxes, any of those losses? Because when the government sets up these systems, they seriously think about how high those fees need to be to prevent you from wanting to take it out. So a lot of people, if you’ve got 100,000 bucks in your IRA, and they go, well, I don’t want to pay the taxes on that.
You need to understand, number one, you’re never getting away from paying the taxes on it. So you need to determine when you want to pay those taxes, not allow the government or the IRS or the central banks to determine that because it won’t be in your best interest. And number two, how do I recoup it? So the plan actually is based upon how much gold do I need to recoup it? Because gold is the primary currency metal and it outperforms everything else during a hyperinflationary event.
And then finally, you want to expand your ability to live, your current standard of living, and you also want to gather enough income-producing assets, which right now they’re at nosebleed level. You can’t do it, they’re too expensive. But moving into the future where gold is undervalued, those assets are overvalued, that’s gonna flip-flop, right? So you’re gonna take advantage of that flip-flop and you’re going to buy into, without debt, those income-producing assets when they’re cheap.
Right now they’re not cheap. So proper diversification, no matter what you’re holding, includes sound money and it must be physical and it must be in your possession. So even if you have a gold or silver IRA, which if that’s what your level of comfort is, that’s what you need to do, regardless of what anybody says, but let’s properly diversify outside of that or any bullion holdings that you choose to have, because you can only do bullion in an IRA, you want to properly diversify even in the precious metals arena.
Does that make sense? So part of it, if you’re holding it in a traditional IRA, at this point it’s going to flow with the spot gold market, right? Which is a contract. So how do you know this is a positive trend? What you see are higher and higher and higher lows. Here’s a guarantee I can give you.
If you keep getting higher and higher lows, you’re going to get higher highs. It’s not rocket science. It’s just logic and it always happens.
We see cut formations here as well. Here’s one, here’s one, and we’ve recently had a breakout. So the long-term positive trend is escalating.
It was slower here. It picked up steam here. It’s picking up steam here, right? So the trend is getting faster and faster.
We’re going into a breakout. At the same time, that volume is escalating because even this volume over here is higher than the volume over there. But that’s trading volume, right? We also know in the buying of the physical volume, that too is escalating.
But this is what, at this time, guides those volume prices, the kind that you can hold inside of an IRA or even the kind of emergency gold, which I like the raw stuff for, outside of the IRA, it’s going to be guided by this market at this moment. That won’t always be true. It hasn’t always been true.
But the premiums just get a lot wider and we’ll see that happening into the future because this is paper. They can create as much gold and silver that doesn’t exist as they want to. So this is where this market started back in 1970 and the index with, so an index is a whole bunch of coins, a whole bunch of these, right, put together.
And that index started at 1,000. You can see that once gold was legalized to hold again, that we had a huge spike. We did that in spot market too, but more so in this market because this is a finite market, especially since in 1986, they standardized the grading of these coins.
Up until that point, if I were a dealer, I could look at this kind of go, well, I think this is a mid-state 65 and sell it to you that way. And maybe it was really a mid-state 61. So the whole industry was standardized and it really took off.
And then of course you have this huge dropdown. So what I’m showing you over here in 94, that’s when you had the bottom of it, of that index at almost 47,000. This is the bottom dip right now.
2021 was the bottom that this index dipped to. It’s higher than this one though, as we can see, right? Higher and higher lows indicates a higher trend. And we have had a little breakout, but we still have not hit the peak that we did in 2008, right? So those premiums are going to grow if history is any guide, which it typically is, but these are severely undervalued.
And my personal expectation is that number one, we have to go and hit this top line and we’re on our way there. We’re close to a second breakout. And then we don’t have anything until this one here.
So these coins are most likely technically to go a lot higher, because as you can see for this entire year, they’ve just gone up and up and up. We need that second breakout. We will get it when we get it.
I will let you know, but essentially we’re still severely undervalued from where the high was back in 89, right? Which was 181,000 to that index. Will it go there? My guess is yes, but I can’t guarantee that. However, we are starting from a severely undervalued level, and there’s no fever like gold fever.
And especially if they do indeed do a covert or an overt confiscation, and now this is the only way that you can hold gold, what do you think are gonna happen in terms of prices? And when we do that reset, what do you think is gonna happen in terms of prices? It’s going through the roof. And that’s why you can then take those gains and convert it into those underlying income-producing assets when they are cheap. As global debt continues to rise, experts warn that gold and silver’s value could significantly increase, reshaping the investment landscape.
If gold were to back global debt fully, it would highlight its enduring role as a reliable store of value, especially during times of economic instability and rising debt. Investors looking to safeguard their wealth against inflation and the weakening of currencies would likely flock to precious metals, driving their prices higher. This shift could prompt a reevaluation of traditional assets and investments, with gold and silver emerging as key hedges in an uncertain financial environment.
While this shift could offer protection for investors, it could also lead to increased market volatility, as central banks and governments might take steps to manage the impact on the global economy and stabilize the financial system. The revaluation of these metals could also make other asset classes less appealing, as gold and silver would likely be seen as more stable stores of value, even in turbulent times. Do you agree with Lynette’s prediction of gold and silver prices? Share your thoughts in the comment section below.
If you found this message compelling and enjoyed the video, be sure to give it a thumbs up, share it with others, subscribe to our channel, and turn on post notifications for more thought-provoking content. Thanks for watching.